Apple Inc. (NASDAQ: AAPL) may never be able to replicate the success of the iPhone, but that doesn’t mean that its products aren’t successful. The firm’s Apple Watch possible suffered most from unfair comparisons to its older sibling. The device was never meant to replace the smartphone, even though Wall Street went a little wild with predictions.
On Thursday morning research firm Strategy Analytics revealed that the wearable had surpassed 30 million in total unit sales.
Counting Apple Watch sales
It’s not easy to get a handle on Apple Watch sales. Every so often someone in the C suite at Cupertino gives us a morsel of information. Apart from that, however, the firm buries Watch sales numbers deep in the Other part of its earnings reports.
Strategy Analytics reckons that Cupertino shipped a total of 2.8 million units of the device in the three months through June. That’s a massive jump from the 1.8 million shipped in the same three quarters of last year.
These are, of course, estimates. We don’t really know how the Watch is really selling. Tim Cook did, however, reveal that there was more than 50 percent growth in sales of the device in Tuesday’s earnings report. That, at the very least, adds weight to the numbers put on it by Strategy Analytics.
The research firm isn’t very transparent with its methodology, however, making it difficult to check accuracy. SA only states that the estimates are from “a blend of channel checks, financial analysis, and other sources.”
Apple Inc. Watch is a Wall Street failure
Despite the very strong year-on-year growth in the Watch, its clear that the device is still a Wall Street failure. When Cupertino revealed it was building a wearable, more than a few analysts proclaimed it the “next big thing.” It’s not there yet, and in truth it’s not even close.
Strategy Analytics is estimating that the Watch sold 13.6 million units in its first year. Ahead of that launch, Wall Street was a lot more optimistic. Katy Huberty, of Morgan Stanley, was looking for sales of 30 million in that first year.
Trip Chowdry, from Global Equities Research, thought Apple Inc. (NASDAQ: AAPL) could sell 41 million wearables in the seven months after launch. The bulls were clearly wrong, and the Watch failed to live up to their standards.
Luckily for Apple stock, something else crept in to replace the device in the minds of investors.
Apple stock is iPhone driven
Even if Apple sales were doubled in the second quarter, it likely wouldn’t have made much difference to Apple stock. The firm is now almost universally considered to be a smartphone maker that has a few peripherals on offer. Unless the iPhone 8 is a complete failure, that’s not going to change any time soon.
That attention on the smart phone comes at the expense of the Watch. The device is getting better which each additional update, but Tim Cook and his team don’t seem to want to spend too much time talking about it, or leaking details of its design process.
The reason Apple stock jumped the other day had nothing to do with the Watch. It had nothing to do with the iPad either. Instead the iPhone 8 release date appears to have been confirmed. That’s all Wall Street really wants to see from the firm, after all.